Mike McCarthy's economic savvy allowed him to retire at age 35; now he's teaching his methods to others in University of Michigan-Flint class

Melissa Cousineau | The Flint JournalProfessor Mike McCarthy teaches his business students at UM-Flint about how to be smart with their money. McCarthy, who due to wise investing and financial decisions, retired from full-time work at age 35.

FLINT, Michigan -- The sour economy hasn't touched Mike McCarthy.

Part of his recession armor -- paying for his house in cash, trimming cellphone costs to $3 a month and pulling one over credit card companies by actually making money off of them.

If his green savvy doesn't make you green with envy yet, just wait -- he retired at age 35.

Now McCarthy, 46, hopes to pass on his wisdom in a new personal finance class offered at the University of Michigan-Flint -- a course originally canceled because of low enrollment but that seemed to get overnight popularity amidst the financial crisis.

As personal debt, foreclosures and plunging investments abound, the 24 students who fill McCarthy's class are hoping to catch some of their teacher's McCarthyism.

"To retire in nine years, that would be nice," said UM-Flint student Jeremy Weippert, 26, of Highland. "(McCarthy) said he invested in good investments when he was young so he could retire early and he was going to pass along information so maybe we could do the same thing."

Weippert, a business major, said the type of trouble people have gotten into because of the economy shows that there can't be too many personal finance tips.

"I wanted to learn how to save my money so when something like this happens again, I still have money," Weippert said.

The theme of the class is "live under your means and retire early," teaching students about personal financial decisions on everything from home mortgages to where to invest in this economy.

McCarthy, a former executive analyst for a management consulting firm and onetime business manager for Baker College of Owosso, said he began a mission to widen the gap between his expenses and income.

At first, he hoped to save enough money to invest in an array of small businesses, but then he came to a different conclusion.

"I realized I no longer had to work full time and put a huge value on having time for myself and walked away from full time work, " McCarthy, a 1980 Grand Blanc High alum who now lives in Fenton Township, wrote in an e-mail.

But it took some creativity and sacrifices.

Until recently, McCarthy figured out how to manage a $3 a month cellphone bill by using a pre-paid phone that allowed him to roll over extra minutes.

He jumped on a train of wise investments, most recently pulling out stock money before last October's crash and buying a foreclosure.

He even made money from credit cards, by pouring cash from zero percent offers into safe investments, keeping track of when the introductory offers ended.

"I know that's only an extra $4,000 per year of income for me, but it's for doing nothing. This is exactly one of the concepts I teach my students," he said. "I'm always trying to think of ways to increase my income without having to work."

McCarthy, whose most recent full time job was as a corporate controller for a company in Dearborn, has also paid cash for cars, his first $45,000 home in 1993 and his current home that cost $139,000.

He hopes to teach students that cutting personal expenses and making wise investments is one of the best things they can do right now.

It's paid off for him.

McCarthy, who doesn't have children, spends free time surfing the Internet and watching television to keep up with global news. The former member of The New Blues Brothers -- known in the county for performances in the 1980s -- also spent time in such groups as the Flint Art Fair and Friends of Modern Art.

"After all this financial turmoil, I think people are more interested in how they're making financial decisions," said Yener Kandogan, UM-Flint's associate dean of school of management. "Not everyone has a personal financial analyst. This course will help them make those important decisions better."